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Finding a Specialist in Farming and Agriculture Finance
You may be new to the farming industry or you could be a seasoned professional with years of experience under your belt. But when you are looking for any kind of Agricultural Finance, there are a range of different options available to you; a little homework goes a long way.
You may be looking for finance to purchase land or other kinds of farm buildings. You may be looking to raise money for new machinery. You may wish to diversify your existing buildings into a tourist or produce-based business. Anything is possible in the farming world, and farmers are a particularly creative bunch. But like all other UK workers, they are looking to secure their futures and considering investment and diversification as the best way to raise their revenues.
Whatever kind of funding you are looking for our experts are able to offer advice, support, and guidance to ensure that you access lending that is most appropriate for your individual needs and circumstances.
Our advisors are both experienced and professional. They can offer you the best possible solutions uniquely tailored to your own personal circumstances.
Why Should I Consult an Expert in Agricultural Asset Finance?
Agricultural Finance is a very specialised area. There are several lenders whose sole focus is on the farming industry and who have a particular understanding of the pain points that farmers face. These lenders appreciate the complexities of grant applications and subsidies. They recognise farmer’s dependence on things like the weather and the vulnerability of supply and demand economies. This makes them uniquely placed to offer expert advice.
What Should I do Before Approaching an Agri-Finance Company?
The kind of funding that you will need is entirely dependent on what you want to do with it and on your own individual circumstances. Wherever you apply for finance you are likely to need a detailed business plan which focuses on how you intend to grow your enterprise and keep up repayments on the loan. You need think carefully about your financial needs and have a clear idea of how you plan to use the funding that you secure.
There are many different organisations, charities and government programmes who recognise the importance of farming to the economy and want to help farmers secure their futures. They can offer free advice and can help you to structure a business plan ahead of seeking any kind of finance. You would be wise to take advantage of their services before approaching any broker or lender.
What Sort of Farming and Agricultural Finance Products Could I Apply For?
Like any other business, farmers can make a case for a standard business loan on the strength of their planning and future projections. Some conventional business lenders are reluctant to lend to farmers unless they can prove contingency planning for things like bad weather, flooding, pests and diseases, fluctuations in food prices. You will probably stand a better chance of acceptance with a specialist Farming Finance Company, or by going through an experienced financial broker.
These are specialised loan products designed to help farmers to purchase land, buildings and to make improvements to their premises to develop or secure their businesses. The property itself is used as collateral and you can borrow up to 80% of its value. Repayments can be arranged to suit the needs of the business – monthly, quarterly, or even annual repayments are possible to fit in with cash flow expectations. Agricultural Mortgages can be more flexible than domestic ones, and payment terms can be extended beyond the conventional 30 year period if necessary.
Again, you can apply for a commercial mortgage secured against your land and farm buildings, but you would be wise to use a specialist lender with experience in Farming and Agriculture Finance who will understand the subtleties of the industry. A Commercial Mortgage can be secured against domestic and farm buildings and against agricultural land that you own. A specialist broker can offer you advice and guidance in this area.
Finance for Purchasing Farm Machinery, Diversification and Environmental Changes
You can use a business loan or a specialist farm loan to purchase essential farm equipment or to upgrade existing facilities. You will probably need to present a strong business case but there are many specialist lenders to consider applications that will help your farm business become more streamlined or environmentally friendly.
You may also find that it is more cost effective to use specialist hire purchase and leasing agreements. There may be grants and matched funding opportunities that you can take advantage of. Our specialist Farming and Agriculture Finance Advisors will be able to talk you through all of your options and advise you of the best kind of funding to suit your individual circumstances.